Margin Calls Loom as Prices of Pledged Shares Plunge
Shares of over 10 listed companies have plummeted over recent month to levels that could trigger the forced sale of the stock pledged by their controlling shareholders as collateral.
The situation underscores growing risks in the loan business after regulators tightened their grip on the practice as part of a national deleveraging campaign.
Telecommunications solution provider Boomsense announced in a filing with the Shenzhen bourse Tuesday that some of its stock pledged by its controlling shareholder as collateral for loans has been subjected to margin calls by creditors due to a continued fall in the share price. The problematic shares account for 17.8% of the firm’s total.
- 1Renowned Stanford Physicist Shoucheng Zhang Dies at 55
- 2Why Former Australian Leader Believes China is About to Outflank Trump on Trade
- 3China: Meng Wanzhou is a Chinese Citizen
- 4Update: Huawei CFO Arrested for Allegedly Violating U.S. Sanctions on Iran
- 5Arrested Huawei Executive Reportedly Linked to Firm That Once Tried to Sell U.S. Goods to Iran
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas